Scottish Widows takes £1.4bn hit on guarantee product

Scottish Widows, the UK life insurer owned by Lloyds TSB, expects its profits to be reduced by £1.4bn (€2.3bn) as a result of its guaranteed annuity rate products.

Although the amount is a significant blow to the Lloyds TSB group, analysts said the admission clarifies what had been an area of uncertainty. For the firm's investment management arm, Scottish Widows Investment Partnership, the disappearance of this cloud will help remove...